On Wednesday, the rupee lost ground versus the dollar, but the Reserve Bank of India intervened to limit the damage. Investors are watching to see if the dollar will drop as a result of the Federal Reserve’s guidance on potential rate hikes.
Bloomberg reports that the rupee was last trading at 82.74 per dollar, down from its previous closing of 82.7050, after starting the day at 82.6537.
Although the native currency had a positive start to the day, it swiftly lost those gains and dropped as low as 82.8212 against the dollar before the RBI intervened to stop any more losses.
“The USD/INR pair, similar to yesterday, was very rangebound ahead of the Fed rate decision tonight. It opened at around 82.64 but bounced to 82.80 before it found some resistance in the form of the RBI,” said Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors.
“Tonight, if the Fed is hawkish on future interest rate hikes, then we could see the rupee breaching the 83.00 level against the dollar. However, a little dovish language could take it towards 82.00,” he added.